#Liquidity101 Liquidity is crucial in crypto, affecting how easily assets can be traded. Bitcoin (BTC), the most established cryptocurrency, has deep liquidity thanks to its massive trading volume and broad exchange support. This makes BTC easy to buy or sell with minimal price impact. In contrast, meme coins like PEPE often face lower liquidity. While PEPE might see spikes in trading during hype cycles, its liquidity can quickly dry up, leading to slippage and volatility. Investors should be cautious—high liquidity in BTC offers stability, while PEPE’s thin liquidity can amplify both gains and losses. Understanding the liquidity differences helps you manage risk and navigate the fast-paced crypto market more effectively, especially when trading high-risk altcoins like PEPE.
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